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- Obama-nominated Judge Mark Walker recused himself from the Disney lawsuit.
- He said a relative held stock in Disney and that he couldn't rule impartially.
- Judge Allen Winsor, a Trump nominee, will take his place.
The federal judge assigned to hear Walt Disney Parks and Resorts' lawsuit against Florida Gov. Ron DeSantis has recused himself from the case, citing potential financial conflicts of interest.
The judge, Mark Walker, wrote in court documents that "a relative within the third degree" held 30 shares of The Walt Disney Co. stock, and that the shares could be affected by the outcome of the lawsuit. Walker learned of the conflict last week, he said.
The judge didn't specify who the relative was, but a "third degree" relative could refer to a cousin, great-grandparent, great-aunt or uncle, or a half-aunt or uncle.
The case will now go before Judge Allen Winsor, a nominee of President Donald Trump — who is challenging DeSantis for the 2024 nomination for president. Winsor was solicitor general of Florida under former state Attorney General Pam Bondi, who later would go on to defend Trump during his first impeachment trial.
The DeSantis administration had requested Walker recuse himself in the case, saying that he couldn't be impartial because of comments he made about Disney in other, unrelated cases.
Walker denied that specific request, calling it "meritless" and accusing DeSantis of "rank judge-shopping," but he still disqualified himself from hearing Disney's lawsuit over the ethical conflict.
Walker was appointed by former President Barack Obama and previously blocked a DeSantis-backed law that restricted how workplaces instituted diversity, equity, and inclusion trainings.
In an April interview with the British newspaper The Telegraph, DeSantis accused Disney of "forum shopping" for a judge "who rules against us all the time" because the entertainment company didn't file its lawsuit in state court.
Instead, Disney sued DeSantis in the US District Court for the Northern District of Florida in April, while he was on an international trade mission, alleging that he tried to "weaponize government power" over the company when it threatened to work to repeal a law that sets strict limitations on how and when LGBTQ topics can be taught in public schools.
The suit accuses DeSantis and his office of engaging in "a targeted campaign of government retaliation" against Disney that was "orchestrated at every step by Governor DeSantis as punishment for Disney's protected speech." The company warned that the actions of the governor "threatens Disney's business operations, jeopardizes its economic future in the region, and violates its constitutional rights."
Walt Disney Co., the parent company of Walt Disney Parks and Resorts, is headquartered in Burbank, California, but the company holds powerful sway in Florida through Walt Disney World, which has roughly 70,000 employees and is the state's biggest tourist attraction.
The lawsuit move by the company, which just laid off 7,000 employees, was an escalation after DeSantis threatened changes to Disney's special tax district, with help from both the Florida legislature and a board he appointed to oversee the district. The governor even floated the idea of building a state prison on bordering land, as well as higher taxes, more regulations, building workforce affordable housing, and exploring the sale of utilities the district owns.
The board counter-sued Disney in state court, asking the 9th Judicial Circuit in Central Florida to render "void and unenforceable"a loophole Disney created to maintain control of its land, calling it "riddled with procedural and substantive defects."
Neither a representative for the board, the governor's office, nor Disney immediately responded to a request for comment from Insider.
This is a breaking news story that will be updated.
from Business Insider https://ift.tt/ljBpYOK
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